SkyFX Is Why Im Broke

50 Words on – Why You Can Go Broke With SkyFX?

If you don’t like talking on the phone with the sales representatives of this broker, make sure you don’t give them your number. Apparently the guys at SkyFx are very pushy with their sales tactics and they will call you over and over, until you give in and open an account or block their number. This is nothing unheard of before and it won’t actually get you broke by itself, but it can get annoying I guess. Many brokers adopt this way of fishing new clients but – although I don’t approve it – I don’t consider it a deal breaker, especially because lately some of their upper management is getting involved, in an attempt to stop the lower level sales guys from using these spam tactics.

 

How to avoid going broke with SkyFx

  • If they bother you with unsolicited phone calls, send an email to their support, asking to erase your phone number from their database.
  • Block the numbers they use to call you. I am sure they have more than one, but I am also sure you can block more than one.
  • Most brokers will widen their spreads according to market conditions. This is not out of the ordinary, but you should monitor the spread at least in the beginning.
  • If you are offered bonuses, do not accept them unless you have read and understood the Terms and Conditions correlated with them.
  • The leverage can go up to 300:1 and minimum position size is 0.05 lots. Although it’s not the biggest leverage in the business, make sure you are not overexposed at news time or during volatile market conditions.
  • Withdraw money as soon as you make a profit. This is a good way of testing the broker’s responsiveness and something that should be done with all brokers, not only SkyFx

 

 

The Good, the Bad and the Ugly Speak

Sky’s the Limit Sky’s the Limit

Although SkyFx is fairly new to the industry (launched in 2011 and regulated by CySEC under license 151/11 – owning company Trademarker (Cyprus) Ltd [1]), so far they’ve done a good job and people seem to be happy with their service. They offer a variety of platforms, starting with the ever popular Meta Trader 4 and continuing with a WebTrader (no download required; easy access from any computer) and Mobile versions of MT4 (for both Android and iPhones). Hedging capabilities are implemented, they don’t frown upon scalping, leverage goes up to 300:1 and their execution is STP (Straight Through Processing); that’s good but what I find more appealing is the fact they use “Real time margin protection, ensuring limits and automatically executing risk management precautions to prevent negative balance.” (source SkyFx.com). What this means is that in the event of huge market movement your account will not enter minus territory and you will not owe money to the broker (if their risk management precautions really work, of course).

According to online sources, the previous owners of SkyFx were connected to 4XP (a well known scam). “Connected” doesn’t mean they were scammers but nonetheless, it’s good that a new owner stepped in and changed all this. The results didn’t take long to appear and in 2015 they won the Best Financial Services Provider to Customers award. No further information about this award is available on their website and we are not sure who awarded it.

 

Come On, Don’t Be Lazy Come On, Don’t Be Lazy

SkyFx definitely needs to pay more attention to their website and the information posted there if they don’t want to look like a lazy kid who doesn’t do his homework. Here’s what I mean: under the World Interest Rates [2] they inform me that Australia’s interest rate is 4.75 when actually it is 2.00%, New Zealand has a 2.50 rate according to them but the real value is 3.25%. The biggest mistake is the ECB interest rate, which according to them is 1.25 when actually it is 0.05% (all the rates I gave were correct at the time of writing but they change constantly so chances are that when you read this review the respective countries will have different rates). Any Forex trader knows how important interest rates are for the country’s currency and how much they affect price direction so I would expect from a Forex broker to know this as well and to give us correct information. They don’t know the correct interest rates? They don’t care? Why did they even have that section on their website? And since we’re here: why do they have the Daily and Weekly Market Analysis section on their website if they don’t post market analysis there?. Why the Education tab? That’s empty too (some sections are “Coming Soon”). So what’s the deal here? The website wasn’t finished but they figured: What the heck nobody cares about education, interest rates or market analysis anyway so let’s go online. But wait, they were founded in 2011 and we are in 2015 now… isn’t that enough time to get your **** together? I’m talking about “site” of course… what did you think?

 

SkyFX Hotline Going Out Of Business. SkyFX Hotline Going Out Of Business.

Their “ugly” is not as ugly as you would think. Sure, they need to work on their website a little (read “a lot”) but from all the hours I spent online I didn’t get the feel that SkyFx is trying to scam their customers. Most of the negative comments are related to the unsolicited calling – that’s bad, I’m not saying it isn’t, but I’ll take that any day instead of price manipulation, deleted profits or similar stuff that’s related to my money. Also, it seems like recently SkyFx is working hard to address the situation and one of their representatives is active on forums, trying to put an end to it. People make mistakes, brokerages make mistakes but when they accept them and work towards fixing the issue, I cant be that angry. As for withdrawal complaints, there are a few but I have yet to see a brokerage with zero complaints: almostblue1 from the United Kingdom says he/she cannot withdraw a small sum that’s left in the account and that SkyFx doesn’t answer calls and e-mails [3]. Kirk from Australia [3] complains about the bad trading advice he received from 2 guys at SkyFx, saying he will never trust a broker again after this. Well, Kirk, don’t expect someone else to trade for you and make you money. If you want to be a trader, that’s not the right way. Besides, (name removed for privacy reasons), a SkyFx Senior Account Manager replies to Kirk’s comment, mentioning that the 2 guys are not employees of the brokerage but of one of their partners. Go figure.

You don’t have to look long for positive comments such as “The best is that i tested there withdrawals and got it in a matter of hours…. twice.” (Adam from Turkey) [3] or “I’ve been trading in SKYFX for more than a year now. Using their STP account. It’s really great service. Deposit & Withdraw are super fast and I’ve never faced any problem with execution.” (Tanvir from Bangladesh) [3]. As always, take everything with a pinch of salt and do your own research if you really want to deposit with this broker.

 

 

Editor’s Note – Is SkyFx a Scam?

After spending many hours on forex forums and on their website, I can say there’s not much evidence that points towards them being scammers. There are a few complaints about problems with withdrawals but overall I think this is just a brokerage that needs to work on their website, now one that is hunting your money.

 

Would I Trade with SkyFx?

They are not bad but that doesn’t make them good for me. Honestly I think there are other brokers out there which can offer me a better service. Also, when I invest with a broker, I want my withdrawals to be instant. I do not want to think about the possibility of having to wait for my money or call the broker, asking why it’s taking so long. Maybe SkyFx doesn’t have this type of problems, but why bother?

 

References

  1. CySEC website
  2. World Interest Rate
  3. FPA on SkyFX

 

Have We Saved You From Going Broke?

  • Niels erik Iversen

    Stay away from skyfx. They are only looking for your money. Very bad service and very difficult to get in touch with. I lost 3K in less than a week. They ask me to open trades without stoploss. I thought no problem, because they promised me riskfree trades, but they did not keep their promises. I tried to get in touch with them, when I were loosing more and more, but it was impossible. A short time before the account was closed, they call me and ask for more deposit. I did not do. Lucky for that, then I have lost more. Skyfx is SCAM even they are regulated.

    Reply
  • Selinah

    I have lost a lot of money with skyfx,my broker has since stop calling because my account went overdrawn he could not get any more money out of me and made lose all that I have made.
    On hind site I should not have allowed Tom Long to use any desk to withdraw money from that account he got to know how much I have and used it all up even overdrawing. Whenever I ask to withdraw money he kept promising but never did ,my account with all the profit I made was 51 thousand,went down to 41 when I called to ask to have safety measures put in place he was not available till it went to ZERO, the most annoying thing is im getting calls of people who say they are affiliates of Skyfx offering to help me recover the money I have lost.

    Reply
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